guidelines for opening of jan aushadhi pharmacy(jap) · page 1 of 24 guidelines for opening of jan...

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Guidelines for Opening of Jan Aushadhi

Pharmacy(JAP)

For –Unemployed pharmacists, Individual entrepreneurs, Doctors,

Registered medical practitioners

S.No. Details Page No

I. M P State Co-operative Jan Aushadhi Marketing Federation’s Scheme - Genesis 2

II. Jan Aushadhi Sangh 2

III. Eligibility Criteria for opening new JAP 3

IV. Margin & incentive for opening new Jan Aushadhi Pharmacy 3

V. Requirements for opening JAP 3

VI. Important operating terms and conditions 4

VII. Role of JAS 5

VIII. Address for submission of application 5

IX. Application form, questionnaire and Undertaking 6-10

X. Draft agreement with terms and conditions 11-23

Jan Aushadhi Sangh (Set Under Madhya Pradesh State Co-operative Janaushadhi Marketing Federation Limited,

Bhopal) B-82, HIG, Vidhya Nagar, Hoshangabad Road, Bhopal, Madhya Pradesh-462026.

Telephone: 0755-4940783, Website : www.janaushadhisangh.org

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I. Jan Aushadhi Sangh (JAS)

Madhya Pradesh State Co-operative Jan Aushadhi Marketing Limited also

known as the “JAN AUSHADHI SANGH” is a State Co-operative

Federation set under ministry of cooperative, Madhya Pradesh, which aims

will help the state in strengthening the medical facility system throughout the

state.

M P State Co-operative Jan Aushadhi Marketing Federation’s Scheme

The scheme’s sole objective is to make Quality Medical Services Available at

Unbeatable Prices for all and bringing down the healthcare budget of every

family of the state. Under the scheme JAS will open Pharmacies, Diagnostic

Centre and Nursing Homes.

II. Jan Aushadhi Pharmacy (JAP)

Jan Aushadhi Pharmacy is the chain of retail outlets that will be opened

across the state of Madhya Pradesh, through these retail outlets quality

medicines (600+ drugs, 150+ surgical item and OTC) will be made available

at 10-76 % lower process than the branded counterpart. Branded cosmetics

will also be made available through these stores. Through these outlets we

aim to spread awareness about generic medicines in the state and lower down

the average medical budget of all the families of the states.

III. Jan Aushadhi Diagnostics Centre (JADC)

Jan Aushadhi Sangh will open JADC across various Tier 1,2 & 3 category

locations across the state with state-of-the-art latest medical equipment to

make quality medical facilities available in urban as well as rural parts of the

state. At these diagnostic centres all the facilities will be available at around

20-30% lower prices from the market

IV. Jan Aushadhi Nursing Home (JANH)

Jan Aushadhi Sang will also open JANH across various locations throughout

the state, which will be stand-alone multi-speciality nursing homes through

which better medical services will be made available for all at Unbeatable

prices.

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V. Eligibility Criteria to open Jan Aushadhi Pharmacy

Individual applicants other than doctors and registered medical practitioners,

should mandatorily be persons having B. Pharma and D. Pharma Degrees.

Any organization applying for a JAP will have to employ B. Pharma / D.

Pharma degree holders and produce proof of the same at the time of

submitting applications. In govt hospital premises including medical colleges,

the preferred agency would be reputed NGOs/Charitable organizations but

individuals would also be eligible.

VI. Margins and Incentives

Operating agency will be provided margin product wise as given below:

A. 20% on Generic Drugs on MRP (Excluding taxes)

B. 30% on Surgical items on MRP (Excluding taxes)

C. 16% on Ethical Drugs on counter Selling price fixed by Jan Aushadhi

Sangh (Excluding taxes)

VII. Requirements for applying for opening new JAP

a. One-time Franchisee fee as per Store type

S.no Model Location Type Sqft Area Investment

1 Platinum Tier - 1 360 Rs. 5,00,000

2 Gold Tier - 2 240 Rs. 4,00,000

3 Silver Tier - 3 120 Rs. 3,00,000

Franchisee Fee Breakup

S.no Model Sqft

Area

Store infra Cost (Front counter,

Storage Racks &

refrigerator)

Computer

Peripherals

Security

Deposit

(Refundable)*

1 Platinum 360 Rs. 2,50,000 Rs. 50,000 Rs. 2,00,000

2 Gold 240 Rs. 2,00,000 Rs. 50,000 Rs. 1,50,000

3 Silver 120 Rs. 1,50,000 Rs. 50,000 Rs. 1,00,000

*The Security deposit is refundable as per the terms and condition

mentioned in Annexure-A

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The demand draft will be made in the favour of “ MP STATE CO-OP

JAN AUSHADHI MAR FED LTD” payable at Bhopal, Madhya Pradesh.

b. Own space or hired space duly supported by proper lease agreement or

space allotment letter. Applicant will arrange the space for running the

Jan Aushadhi Pharmacy & Jan Aushadhi Sangh will have no role for

arranging space.

c. Proof of securing a pharmacist with name, Registration with the State

Council etc. (or it can be submitted at the time of final approval of JAS)

d. If applicant is under the category of SC, ST and Differently-abled, then

proof of SC, ST and Differently-abled certificate from respective

authorities.

VIII. Important Operating Terms and Conditions

Important operating terms and conditions for operating JAP are given below:

a) Applicant will enter into agreement before commencing operations of “Jan

Aushadhi Pharmacy”. All operations of Jan Aushadhi Pharmacy will be

conducted as per agreement terms and conditions.

b) It shall be the responsibility of the applicant to obtain valid retail drug license

and other permissions to run a drug store. Compliance to all statutory requirements for storage of drugs shall be ensured by the applicant.

c) Applicant will use the premises solely for the purpose for which it has been

allotted and for no other purpose and shall not part with the premises, sub-

let the premises to anyone directly or indirectly.

d) All billings should be done using software provided by JAS. No medicine

can be sold in JAP without using the software provided by JAS.

e) All the products that will be sold at the JAP i.e. Drugs (Generic & Ethnic), Surgical items, OTC and allied will be supplied by JAS only.

f) JAS’s will take back Expiry/Breakage to the maximum extent or upto 2% of the total purchase value by JAP.

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g) Credit period of 30 days will be given from date of invoice of medicines by JAP but one-time security cheques (3 Cheques in Favour of MP STATE CO-OP JAN AUSHADHI MAR FED LTD, duly signed without date and amount) will be required to given by JAP in advance against goods supplied. All the payments against goods supplied will be made through digital transaction Only.

Detailed terms and conditions are given in draft agreement attached and may be referred by applicant.

IX. Role of JAS

a. For proper implementation of the Yojana, JAS would render all

required assistance to the operating agency for running the JAP

for furthering the objective of the Jan Aushadhi Sangh Yojana

Program.

a. JAS shall also facilitate the supply of quality generic medicines,

surgical items, consumable, OTC products etc through its supply chain to

Jan Aushadhi Pharmacy, with appropriate margins and credit facilities

upto 30 days.

Address for submission of application

1. Application should be sent in the prescribed format along with the required

documents to below mentioned address in a closed envelope/cover clearly super

scribed as “Application for The New JAP”

To,

The General Manager, Jan Aushadhi Sangh (JAS),

Madhya Pradesh State Co-operative Janaushadhi Marketing Federation

Limited, Bhopal

B-82, HIG, Vidhya Nagar,

Hoshangabad Road, Bhopal,

Madhya Pradesh- 462026

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Madhya Pradesh State Co-operative Jan Aushadhi Marketing Federation’s Scheme

Application for opening “Jan Aushadhi Pharmacy” at ___________________

S NO Particulars Details

1 Name of Applicant

2 Status of Applicant Individual entrepreneur

Charitable Institute/Hospital

(Tick Appropriate Box) NGO / Trust

Government/ Government Nominated Agency

Any Other (Please specify)_______________

3 Registration Number of

Organization, Date of

Incorporation (if Applicable)

4 Name of Contact Person

Designation

Mobile No/Landline No

Email id

5 Aadhaar Card Number

6 PAN Number

7 Location of the Proposed Store

with Complete Address

Declaration:

1. I have gone through the terms and conditions as mentioned in the guidelines for opening of Jan

Aushadhi Pharmacy and agree to abide by the same.

2. I/We hereby declare that all the information as mentioned above is true to best of my knowledge. If

any information is found to be incorrect, my/our candidature is liable to be cancelled and may be subject

to legal/disciplinary proceedings.

3.Supporting documents are attached wherever required for information as provided above

Passport

Size

Photograph

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Date: Signature

Place: Name and Designation

Note: Applications without Aadhaar Card shall be summarily rejected.

List of documents required to be attached with application

Individual

1. Aadhar Card

2. Pan Card

Institutions/NGO/

Charitable Institute/Hospital etc.

1. Aadhaar Card

2. Pan card

3. Certificate for Incorporation

4. Registration certificate

Government/ Govt Nominated Agency

1. Details of Department who has

allocated the space, along with

supporting documents/ sanction

Order.

2. Pan Card

3. Aadhar Card

4. Registration Certificate

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For Individual entrepreneurs/ Institution who are already running a

Pharmacy/ Medical Store and want to convert it into Jan Aushadhi Pharmacy.

1. Complete Address along with landmark of your Pharmacy/ Medical

Store’s Location.

________________________________________________________

________________________________________________________

________________________________________________________

2. Why do you want to convert your existing Pharmacy/ Medical Store to

Jan Aushadhi Pharmacy.

________________________________________________________

________________________________________________________

________________________________________________________

3. Is it a Private Pharmacy/ Medical Store or a Franchisee store/ PMBJP

store?

________________________________________________________

________________________________________________________

________________________________________________________

4. The store has been operational for how many years?

________________________________________________________

________________________________________________________

________________________________________________________

5. What all products are being sold at your store?

________________________________________________________

________________________________________________________

________________________________________________________

6. Do you have a valid retail drug licence for your store? If “Yes” the what

is the validity of the licence.

________________________________________________________

________________________________________________________

________________________________________________________

7. Is you Retail Drug Licence in the name of an individual or an

organization e.g. PMBJP.

________________________________________________________

________________________________________________________

________________________________________________________

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8. What is the size of your store? kindly specify the size in Sqft.

________________________________________________________

________________________________________________________

________________________________________________________

9. kindly share the following pictures of your store.

a) Front Counter.

b) Front Road Access to your store.

c) Storage and other Infra.

d) Computer & Printer

e) Refrigerator for cold chain products.

10. What is the average daily and monthly sale of your Pharmacy/

Medical Store?

______________________________________________________________________________________________________________________________________________________________________________________

11. How employees do you have in your Pharmacy/ Medical Store. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

12. What are the working hours for your Pharmacy/ Medical Store? _______________________________________________________________________________________________________________________________________________________________________________________

13. What is the commercial value of the stock currently available at you Pharmacy/ Medical Store? _______________________________________________________________________________________________________________________________________________________________________________________

14. Are there any legal formalities that you need to complete with your Franchisor organization before you can convert the store? _______________________________________________________________________________________________________________________________________________________________________________________

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15. If your answer is “Yes” for question Number 1, then how much time is required to complete those formalities? _______________________________________________________________________________________________________________________________________________________________________________________

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ANNEXURE -I

NOTARIZED UNDERTAKING

(In 50-Rupees Stamp Paper)

I.........................................,S/o..........................................................,Proprietor/Partner/Ma

naging Director of ..................................(Proprietary Concern/Firm/Company Ltd.) execute this

undertaking for myself and on behalf of.....................................................(Proprietary

Concern/Firm/Company Ltd.).

This is to certify that I wish to convert my existing Medical Store located at

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

into Jan Aushadhi Pharmacy by my free will and I am, under no pressure of any kind by any

Individual or Organization. I have completed all the formalities pertaining to the closer of my

agreement with my previous franchisor and I have cleared all pending dues towards the same, if

in future any claim of any sort is made by my previous franchisor or any vendor that has supplied

goods to my medical store before the date of execution of this agreement pertaining to my medical

store then those claims are solely my responsibility to settle and Jan Aushadhi Sangh has no

responsibility against the same.

M/s....................................................................

For Self and Firm/Company Ltd.

(Signature and Seal)

Witness:-

(1).......................................

(2).......................................

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For Unemployed pharmacists, Individual entrepreneurs, Doctors, Registered

medical practitioners

AGREEMENT

BETWEEN

JAN AUSHADHI SANGH (JAS)

Madhya Pradesh State Co-operative Janaushadhi Marketing

Federation Limited, Bhopal

AND

-----------------------------------------------------------

(Applicant Approved for opening of Jan Aushadhi Pharmacy)

ON ………………………….. (Date)

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A G R E E M E N T

THIS AGREEMENT is made and entered into on the ____day of __________month

of 20___ between Jan Aushadhi Sangh, set up under Madhya Pradesh State Co-operative

Janaushadhi Marketing Federation Limited, Bhopal, having its Registered Office at B-82, HIG,

Vidhya Nagar, Hoshangabad Road, Bhopal, Madhya Pradesh., hereinafter referred to as “JAS”

(which expression shall mean and include its successors and assigns) of the ONE PART;

AND

The applicant, M/S. ____________________ Society/Institution/------------------- registered

under (Name of the act) having its registered office at

(ADDRESS) through its (Proprietor / Partner / Director / President)_____Mr.

_________________________________, (hereinafter referred to as “THE APPLICANT” which

expression shall mean and include the (Proprietor / Partner / Director / President) for the

time being and from time to time constituting the said, the survivors of them, their legal heirs

and legal representatives of the last surviving partners in business and permitted assigns) of the

OTHER PART.

WHEREAS: -

(a) JAS is presently engaged in procurement, marketing, sale & distribution of medicines and

drugs including those manufactured by other manufacturers (hereinafter collectively referred to

as “The Products”) and is desirous of opening a “Jan Aushadhi Pharmacy” (hereinafter

referred to as Jan Aushadhi Pharmacy) at ____________ in the district of

___________________ within the state of _______________ for sale of generic medicines to public.

(b) “THE APPLICANT” has represented and warranted that he has the necessary Space/

manpower/ licenses / equipment and associated peripherals and has also got sound financial

status as required to open and operate the Jan Aushadhi Pharmacy and in that connection is

also ready to perform all activities including purchase of medicines after making payment as per

the assigned credit period to Jan Aushadhi Sangh, receive and store the stock under ambient

temperature as required for storage of medicines, make retail sale, after generating sale invoice

at prices fixed by JAS from time to time, collect money thereof from customers for the sale value,

make necessary transactions entry in computerized software system and make available sufficient

funds for purchase and replenishment with fresh stock of MEDICINES to run the Jan Aushadhi

Pharmacy on sustainable basis, and has requested JAS to allocate him/them a Jan Aushadhi

Pharmacy at the aforementioned address as specified in clause (a) of this agreement.

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(c) JAS after considering the aforesaid request of the “APPLICANT” and has agreed to allow

for establishing and operate Jan Aushadhi Pharmacy at ____________ in the district of _____________ within the state of ________________ for sale

of Drugs (Generic & Ethnic), Surgical items, OTC and allied will be supplied by JAS.

This agreement remains in force for a period of 36 months commencing from

_________________ and applicable till _________________, unless terminated earlier as per

clause _____ of this agreement. This agreement can be renewed for a further period of 36 months

after mutual consent of both the parties in writing. (d) JAS retains the right to make direct sales and to appoint one or more Jan Aushadhi

Pharmacyin the same area / location / town and city depending on the population density of

the area. (e) Consistent with these introductory Sections and in consideration of the mutual consent

contained in this AGREEMENT, JAS and THE APPLICANT agree to be bound by the terms of this

AGREEMENT.

1. Shop Site Selection & Design

THE APPLICANT will adhere to JAS’s procedures and requirements for site selection and design

of the SHOP, as stated hereunder:

1.1 The site location for opening the Jan Aushadhi store should be either in the hospital premises

or near to hospital. If the location does not happen to be a hospital or near to hospital, than

the same should be located at a place where high footfall happens and is easily accessible to

people along with good site visibility.

1.2 The site for Jan Aushadhi Pharmacy should either be owned or taken on lease in the name

of Applicant. In case of lease, the same should remain effective and under the possession of

Applicant for at least 03 complete years from the effective date of opening.

1.3 The minimum area required for opening Jan Aushadhi Pharmacy would be model specific

as per the table given below.

S.no Model Location Type Sqft Area Investment

1 Platinum Tier - 1 360 Rs. 5,00,000

2 Gold Tier - 2 240 Rs. 4,00,000

3 Silver Tier - 3 120 Rs. 3,00,000

Franchisee Fee Breakup

S.no Model Sqft

Area

Store infra Cost (Front counter,

Storage Racks &

refrigerator)

Computer

Peripherals

Security

Deposit

(Refundable)*

1 Platinum 360 Rs. 2,50,000 Rs. 50,000 Rs. 2,00,000

2 Gold 240 Rs. 2,00,000 Rs. 50,000 Rs. 1,50,000

3 Silver 120 Rs. 1,50,000 Rs. 50,000 Rs. 1,00,000

*The Security deposit is refundable as per the terms and condition mentioned in Annexure-A

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1.4 The inside area of Jan Aushadhi Pharmacy premises being utilized for storage and sale

transaction of medicines should be in “U” or in “C” shape, for better visibility to customer &

visitor.

1.5 Although the requirement of Airconditioned premises is not mandatory, however provision for

the same is highly desirable as the medicines should be kept or stored under a temperature

of less than 25°C to maintain its best efficacy. Applicants with air-conditioned facility in the

premises will be preferred over others.

1.6 In the case of a successive term being further permitted to the APPLICANT, then the existing

structure may be required to be modified in order to comply with the standards applicable

and prevailing at that time.

1.7 THE APPLICANT shall not commence (or recommence) operations of the Jan Aushadhi

Pharmacy until and unless JAS approves the same for being reasonably conforming to the

planned specifications.

1.8 This agreement does not grant “THE APPLICANT” any right to relocate the Jan Aushadhi

Pharmacy without any permission in writing from JAS

2. THE APPLICANT shall, at all times during the applicable term continuously and faithfully

operate the JAN AUSHADHI PHARMACY in full compliance with the defined terms & conditions as

listed hereunder:

2.1 DESIGNATED SHOP MANAGER.

THE APPLICANT shall at all times have a person on rolls with minimum qualification of Diploma

in Pharmacy (i.e. D. Pharm.) or Degree in Pharmacy (i.e. B. Pharm.), designated as Jan

Aushadhi Pharmacy Manager having primary responsibility for the day to day operation of

the Jan Aushadhi Pharmacy in accordance with this agreement, who shall be reasonably

acceptable to JAS (including, but not limited to, the requirement that such individual possess

sufficient experience in the management of a retail pharmacy business, as determined by JAS

in its sole discretion.

2.2 Best Efforts

The Jan Aushadhi PharmacyMANAGER shall furnish personal full time attention and best

efforts to the day to day management and operation of Jan Aushadhi Pharmacyin

accordance with the requirements of this AGREEMENT and he must maintain a physical

presence at the Jan Aushadhi Sangh Pharmacy.

2.3 Jan Aushadhi PharmacyEmployees

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In addition to the designated Jan Aushadhi Pharmacy MANAGER, the Jan Aushadhi

Pharmacyshall be staffed with qualified, competent employees well versed with working in

computerized operation and will assist the Jan Aushadhi Pharmacy Manager in day to day

operations, and who are employed solely by THE APPLICANT and not by JAS. THE APPLICANT

is solely responsible for hiring and discharging employees of the SHOP, and setting their

wages and terms of employment. THE APPLICANT shall comply with all applicable laws and

regulations as applicable from time to time under respective laws. All employment related

documents, including, without limitation, employment applications, schedules, job

descriptions, and pay checks, must clearly identify THE APPLICANT, and not JAS, as the

employer

2.4 Operations and Product Standards

Unless JAS specifically permits otherwise, in writing: THE APPLICANT shall offer for sale from the SHOP the entire list of medicines and other consumables/surgical items as listed and made available periodically by JAS. i. THE APPLICANT is permitted to sell from the Jan Aushadhi Pharmacyonly the

Medicines which are supplied by JAS. ii. THE APPLICANT will be allowed to sell allied medical products commonly sold in

chemist shops but are not supplied by JAS. iii. THE APPLICANT will at all times maintain an inventory of all listed medicines of JAS to

satisfy customer demand for any or all medicines required to be sold at the JAN

AUSHADHI STORE. THE APPLICANT will adhere to the requirements for medicines &

drug storage, its handling as per the applicable Drug & Cosmetic Act 1940, as amended

and applicable from time to time. The medicines merchandising, presentation and

display will also be managed by THE APPLICANT to make it more informative for the

buyer and will have to emphasize the impact in terms of cost advantage between

generic and branded medicines. If THE APPLICANT fails to conduct its business in

accordance with the requirements of this Section 2.4, then, without limiting the rights

of JAS under this AGREEMENT JAS may, temporarily suspend THE APPLICANT'S right

to operate under this AGREEMENT, or temporarily or permanently suspend THE

APPLICANT'S right to sell certain products under this AGREEMENT, or permanently

terminate this AGREEMENT. The final decision rests with JAS and shall be binding on

the applicant.

2.5 Sources of Supply

In order to safeguard the integrity of JAS, and to maintain the uniformity and quality of items

associated with the JAN AUHSADHI PHARMACY campaign, THE APPLICANT shall only

purchase the medicines form JAS warehouse.

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2.5.1 GENERIC MEDICINES

THE APPLICANT acknowledges that the generic medicines used in, and offered and sold from

the Jan Aushadhi Sangh Pharmacy, as authorized by JAS from time to time, are

manufactured using proprietary recipes and processes, and are an inseparable and essential

element of the Jan Aushadhi Pharmacy campaign. In order to protect the interests of

JAS, and their respective suppliers, and to ensure the quality, uniformity, and distinctiveness

of the medicines, THE APPLICANT agrees to purchase its entire requirements of generic

medicines, OTC and allied products from JAS, or the supplier designated by JAS, at prices,

determined by JAS only.

2.5.2 Jan Aushadhi Pharmacy will be extended credit period of 30 days from date of invoice, but

3 post cheque will be required to be given by JAS in advance against goods supplied.

2.5.3 JAS will take back Expiry/Breakage to the maximum extent or upto 2% of the total purchase

value of JAP.

2.5.4 JAS will not accept any return/exchange of products which are supplied against confirmed

orders. However, when product is supplied first time to JAS and same is not sold, JAS will take

back the return within three months of date of first invoice of that product

2.5.5 Supplies and Equipment

THE APPLICANT shall not use paper goods, packaging, fixtures, equipment, signs, uniforms,

and other supplies at the SHOP which do not bear the text and the logo of “Jan Aushadhi

Sangh Pharmacy” required by JAS, in the manner and format required and approved in

advance by JAS.

A Cash discount of 1% can be availed by the Store owner on cash purchase of products ( The

discount will be on the bill itself, only if there are no previous outstanding)

2.6 Mandatory Participation in Marketing Programs.

THE APPLICANT acknowledges that THE APPLICANT'S participation in promotions and

marketing programs established by JAS is important to enhance the value, recognition, and

reputation of the JAN AUSHADHI campaign and agrees that THE APPLICANT shall participate

in those promotions and marketing programs established from time to time by JAS that are

appropriate to the Jan Aushadhi Sangh Pharmacy, as determined by JAS

2.7 Compliance with Laws

THE APPLICANT shall fully, strictly and faithfully comply with all laws (including, but not limited

to, statutes, ordinances, regulations, and governmental orders) affecting the operation of the Jan

Aushadhi Sangh Pharmacy. In particular, THE APPLICANT shall have a Drug Sale License for

the store location from the competent authority and operate and maintain the Jan Aushadhi

Pharmacy and its premises in strict compliance with all applicable drug & cosmetic act, health,

sanitation, fire and safety codes and requirements. If any law affecting THE APPLICANT'S

operation of the Jan Aushadhi Pharmacy does not happen to comply with any specific

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regulation, then THE APPLICANT shall satisfy the same with applicable regulation by making

necessary modifications, changes etc thereof. If THE APPLICANT perceives any law affecting THE

APPLICANT'S operation of the Jan Aushadhi Pharmacy to conflict with any of the regulations,

then THE APPLICANT shall notify JAS in writing, identifying the specific law, so that JAS may

determine how to resolve the perceived conflict.

2.8 Remedying damaged and contamination

If any medicine dispensed at the Jan Aushadhi Pharmacy is soiled, contaminated or in cut,

torn or in spillage condition and does not comply with applicable law or regulations, or fails

to be maintained in accordance with the requirements then, THE APPLICANT shall

immediately eliminate the source of contamination, remedy all unsanitary conditions at the

Jan Aushadhi Pharmacy, This remedy is in addition to, and not in lieu of, other rights or

remedies that JAS has for THE APPLICANT'S breach of this AGREEMENT.

2.9 Shop Inspections

In order to safeguard and determine compliance with the Jan Aushadhi Pharmacy

standards JAS representatives shall have the absolute right to enter, remain in, and inspect

the SHOP whenever JAS deems it appropriate. JAS representatives may, without prior notice

to THE APPLICANT, interview THE APPLICANT'S employees and customers, take photographs,

video, and similar recordings, examine, evaluate and take representative sample of the

medicines stored or sold. JAS shall have the right to use all interviews, photographs, video,

and other recordings for any reason JAS deems appropriate, including in advertising,

marketing and other promotional materials. THE APPLICANT shall not be entitled to, and

hereby expressly waives, any right that it might otherwise have to be compensated for the

use of interviews, photographs, video, and other recordings by JAS, its advertising agencies.

Being a Madhya Pradesh State Co-operative campaign, the Jan Aushadhi Pharmacy may

also get visited and inspected by Government Officials, Honourable Parliamentarians, without

any prior notice to THE APPLICANT.

2.10 Correcting Deficiencies

THE APPLICANT shall at its own expense promptly, and within any period reasonably specified

by JAS, correct any violation of the defined norms. If, during an inspection, JAS identifies a

violation of the norms that:

Is a reoccurrence of a previously identified violation of the defined standards, occurring at the

Jan Aushadhi Pharmacy within the preceding 12 months; or

Is a continuation of a previously identified violation of the defined standards, which THE

APPLICANT failed to correct within a maximum period of 03 months from the date on which

notice has been served by JAS; In such a case, JAS may ask THE APPLICANT to reimburse

JAS for the costs of a subsequent inspection of the shop, conducted to determine whether

the reoccurring or continuing violation of the defined standards has been cured, at the rate

of Rs. 500.00 (Rupees Five Hundred Only) per hour of the JAS representative's time (including

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travel time) plus travel and related expenses. This remedy is in addition to, and not in lieu of,

other rights or remedies that JAS has for THE APPLICANT'S breach of this AGREEMENT.

2.11 Repair and Renovation

THE APPLICANT shall repair, rehabilitate, refurbish, modernize, renovate and upgrade the

Jan Aushadhi Pharmacy periodically as per Jan Aushadhi Pharmacy design and model to

maintain it in a clean, attractive and orderly condition, to provide efficient, high-quality service

to the public, and to conform to specifications applicable generally to medicine shop. THE

APPLICANT must obtain the prior written approval of JAS if any efforts to be taken under this

Section

2.12 Sales and Product Mix Reporting Requirements

THE APPLICANT shall upon request periodically provide JAS with any and all requested

information related to THE APPLICANT'S sales, costs, earnings and related items. THE

APPLICANT acknowledges that JAS may request this information be provided monthly, and

occasionally more often, and in some instances THE APPLICANT may be required to track

certain information not regularly tracked by THE APPLICANT.

2.13 Projecting Requirements of Medicines

At the request of JAS, THE APPLICANT shall periodically project sales and product

requirements. THE APPLICANT shall endeavour to project quantities of medicines needed,

including quantity of each of the MEDICINES, and the anticipated timing of such need. THE

APPLICANT acknowledges that this information is important to JAS so that it or its designated

supplier may project quantities to be manufactured.

2.14 Hours of Operation

THE APPLICANT shall keep the Jan Aushadhi Pharmacy open and in normal operation

starting from 09:00 Hrs. to 21:00 Hrs. with the option of a Lunch Break from 13:00 Hrs. to

14:00 hrs. However, it is suggested to have the lunch on rotation basis so that one staff

remains always present for the sales operation. THE APPLICANT shall conspicuously post on

or within the Jan Aushadhi Pharmacy premises, at a location visible to public about the

shop operational and non-operational hours. This should also include contact number

displayed prominently so that patient can contact and purchase medicines when shop is

closed. In case of metro and big cities, the shop would remain open from 6 am to till 12

midnight. JAS located in big hospitals and medical colleges shall remain open round the clock.

2.15 Point of sale SYSTEM

To ensure the efficient management and operation of the Jan Aushadhi Pharmacy, and

the reporting of data and information to JAS, THE APPLICANT shall, at its own expense, install,

and during the tenure of association shall properly maintain in good working order, a

computerized point of sale system consisting of one or more cash registers, a internet

connection / modem, cables, a dedicated telephone line, a printer and other accessories and

peripheral equipment, all of which must be approved by JAS prior to start of operation or

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otherwise in writing. The software for computerized operation for POS will be uploaded free

of cost by JAS. The applicant will have to ensure that all sales transactions are fed & updated

in the system and a sale receipt of cash memo must get generated and handed over to the

buyer along with medicines.

2.16 Collecting POS INFORMATION

THE APPLICANT shall at all times use the POS SYSTEM to accurately, consistently, and

completely capture & record (including the name of doctor prescribing the medicine), and

structure all data and information that JAS prescribes from time to time either through

automated software or manually.

2.17 JAS’s Access to POS INFORMATION

THE APPLICANT agrees that JAS will have the absolute right to retrieve, electronically and

manually, any or all of the POS INFORMATION that JAS deems necessary or appropriate, or

desires. THE APPLICANT may retrieve the POS INFORMATION at intervals and times JAS

determines, and without any advance notice to THE APPLICANT. THE APPLICANT shall assist

JAS in initially establishing electronic access to the POS INFORMATION, and shall thereafter,

as required by JAS, from time to time provide further assistance in connection with the

retrieval of the POS INFORMATION.

2.18 Updates, Modifications, and Replacements

THE APPLICANT shall have no right to update or replace software used by the POS SYSTEM.

THE APPLICANT shall make, or at JAS’s direction shall permit the designated person from JAS

to make, any programming changes required from time to time by JAS.

2.19 JAS’s Ownership and Use of POS Information

THE APPLICANT agrees that all POS INFORMATION provided to JAS, whether electronically

retrieved or otherwise received, will become JAS’s property and the same may be used by

JAS in any manner JAS considers appropriate.

2.20 Access to Email & Internet; Consent to Communication Medium

THE APPLICANT acknowledges that the world-wide web (www), internet, intranet, extranet,

email, and similar medium are becoming an increasingly accepted and normal way of

communicating. THE APPLICANT further acknowledges that JAS may from time to time desire

to communicate with THE APPLICANT using any of the foregoing medium. Therefore, THE

APPLICANT shall at all times, before and during the tenure of association have ready access

to a computer at Jan Aushadhi Pharmacy with internet access and a reasonably current

web browser, and:

2.20.1 Maintain an email address to which JAS may send electronic communications; keep

JAS apprised of THE APPLICANT'S current email address; regularly check, at a

frequency which may be every day, for email communications from JAS;

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2.20.2Timely respond to email communications from JAS, within a maximum of 48 hours

from receipt;

2.20.3 In the event JAS establishes an intranet, extranet, or other means of posting

information on a web site or similar on-line medium, then regularly check, at a

frequency, which may be every day, for information communicated by JAS.

Except in the case of a NOTICE, THE APPLICANT hereby consents to receiving any

communication or information contemplated by AGREEMENT in any manner contemplated by

this Section 2.20, which communication or information shall be deemed communicated upon

sending electronically to the email address designated by THE APPLICANT for such purpose,

or upon posting on any web site or other on-line medium maintained by JAS for such purpose.

2.21 Prompt Payment of Obligations

THE APPLICANT acknowledges that THE APPLICANT'S payment practices can impact the

willingness of third parties to do business with, and extend credit to, others. Therefore, THE

APPLCANT SHALL also timely pay all obligations and liabilities due and payable to vendors,

suppliers, distributors, the LANDLORD, and other parties to whom THE APPLICANT incurs

obligations in connection with the Jan Aushadhi Pharmacy.

2.22 Significant Event Notifications

THE APPLICANT will keep JAS informed of any fact, matter or circumstance that has a

significant bearing on THE APPLICANT'S ability to continue to operate the Jan Aushadhi

Pharmacy in accordance with this AGREEMENT. Without limiting the preceding requirement,

THE APPLICANT shall promptly, and in no event more than 7 days after THE APPLICANT

becomes aware of any of the following situations related to the Jan Aushadhi Pharmacy,

provide NOTICE to JAS of the circumstances, and provide JAS with copies of pertinent

documents, and any other information JAS requires:

(a) Any notice of default received with respect to the SHOP PREMISES from the LANDLORD, a rental agent, mortgagee, or lender.

(b) Any claims, lawsuits, or other legal proceedings, asserted or brought by any consumer,

employee, governmental agency, or anyone else. (c) Any governmental inspections, notices, claims, reports, warnings, or citations. (d) Any fires, robberies, injuries, or similar events occurring on or at the Jan Aushadhi

Pharmacy (e) Any other matters, including those not related to the Jan Aushadhi Pharmacy the could

impair the good will associated with JAS

3. Fund Requirements & Earnings by the Applicant

3.1Applicant will arrange sufficient funds for smooth running of JAS at all times.

3.2 Retail margins will be the earning of Applicants. The retail margins as applicable

as per Government notifications will be included in the MRP (Maximum Retail Price) on

each product and the applicant shall sell all products at printed MRP only. The currently

applicable rate of Margins are as mentioned below

A. 20% on Generic Drugs on MRP (Excluding taxes) B. 30% on Surgical items on MRP (Excluding taxes) C. 16% on Ethical Drugs on counter Selling price fixed by Jan Aushadhi Sangh

(Excluding taxes)

3.3 In addition to the investment required for setting up the necessary infrastructure

for opening of Jan Aushadhi Pharmacy as per the requirement of this agreement,

applicant will invest sufficient money to run the store smoothly by making all products

available at all times

3.4 THE APPLICANT also acknowledges and agrees that this AGREEMENT confers no

right to continuation, renewal for a subsequent term on or after the EXPIRATION

DATE.

4. Sourcing of Drugs (Generic & Ethnic), Surgical items, OTC and allied

products

THE APPLICANT shall purchase Drugs (Generic & Ethnic), Surgical items, OTC and

allied products in JAS list in connection with the operation of the Jan Aushadhi Sangh

Pharmacy, only from JAS Warehouse or authorized Distributor/C&F agent appointed

by JAS as informed by JAS.

In-case of any change in source for procurement of Medicines, JAS will inform THE

APPLICANT in writing.

5. Ongoing Advice and Assistance

During the applicable term of this agreement JAS shall, at no charge, from time to

time provide THE APPLICANT with such advisory assistance, information, techniques,

data, and instructional materials concerning the sale of Medicines from Jan Aushadhi

Pharmacy, and also marketing programs applicable to the JAN AUSHADHI campaign,

local marketing of the Jan Aushadhi Pharmacy, and adherence to the process and

guidelines as JAS deems advisable.

6. Termination

6.1 JAS shall be entitled to terminate this Agreement immediately forthwith in any one

or more of the following events, by giving a notice in writing to the “APPLICANT”:

6.2 If, in the opinion of JAS, the performance of the “APPLICANT” is found to be unsatisfactory.

6.3 If the “APPLICANT” commits a breach of any of the terms and conditions of this Agreement.

6.4 If there is any change (not acceptable to JAS) in the constitution of the “APPLICANT” without the prior written consent of JAS.

6.5 If for any reason, the “APPLICANT” is prevented for a period of three months from performing any of his obligations under this Agreement.

6.6 If the “APPLICANT” is guilty of any conduct which, in the opinion of JAS, is prejudicial to JAS interest or JAS principles of fair business practices.

6.7 If the “APPLICANT” assigns or purport to assigns its rights, interest or benefits or charge the benefits of the Agreement without obtaining the consent in writing of JAS.

6.8 If the “APPLICANT” is declared insolvent or commit any act of insolvency or compound or enter into a scheme of compromise with their creditors.

6.9 If the “APPLICANT” is charged with committing breach of any law of India or any anti bribery or anti-corruption legislation as the case may be.

7. Confidential Information THE APPLICANT acknowledges that JAS will from time to time provide THE APPLICANT

with information that is confidential in nature and that if disclosed to third parties might

adversely impact the ability of JAS to remain competitive. THE APPLICANT agrees that,

unless otherwise determined by JAS, the marketing strategies and programs developed

by JAS shall be treated as confidential until publicly disseminated in accordance with

the instructions of JAS. THE APPLICANT shall not disclose any confidential information

to any person other than THE APPLICANT'S employees as may be necessary to

discharge the assigned duties of Jan Aushadhi Pharmacy operations, and THE

APPLICANT agrees not to use any such confidential information for any purpose other

than to discharge its obligations under this AGREEMENT.

8. Force Majeure

Neither party shall be in default if a failure to perform any obligation hereunder is

caused solely be supervening conditions beyond that party’s reasonable control,

including acts of god, civil commotion, strikes, acts of terrorism etc.

9. Dispute Resolution This agreement shall be deemed to have been made/executed at Bhopal, Madhya

Pradesh for all purpose. In the event of any dispute related to the interpretation or

right or liabilities arising out of this agreement, the same shall, at first instance, be

amicably, the same shall be referred to the sole arbitrator to be appointed by the

President of JAS of the first party under the arbitration and conciliation Act, 1996. The

award given by the arbitrator shall be final and binding on the parties. The venue for

arbitration shall be at Bhopal, Madhya Pradesh 10. Governing Law/Jurisdiction

The applicable law governing this agreement shall be the laws of India and the court

of Delhi shall have the exclusive jurisdiction to try any dispute with respect to this

agreement

IN WITNESS WHERE OF THE FIRST PARTY AND SECOND PARTY APPEND THEIR

SIGNATURE IN TOKEN OF HAVING ACCEPTED THE ABOVE TERMS AND CONDITIONS ON

THIS _____________ DAY OF _______________ 20____ AS MENTIONED ABOVE. IN THE

PRESENCE OF THE FOLLOWING WITNESSES.

SIGNED SEALED AND DELIVERED FOR THE FIRST PARTY.

WITNESS

SIGNED SEALED AND DELIVERED FOR THE SECOND PARTY

WITNESS

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